SPECIALREPORT How To

Sell The House You No Longer Want

SPECIALREPORT How To

Sell The House You No Longer Want

If you purchased a second home or investment property while the real estate boom was still occurring, you might be feeling the pinch of that extra mortgage now. After all, paying for another house that you rarely occupy can get expensive. You may even have become an absentee homeowner after moving for a job or family reasons without being able to sell your original property.

No matter what the cause, you’re stuck with a house you no longer want, and you want to be able to get rid of it without too much trouble or a major loss of money. Dealing with conventional real estate agencies often turns out to be difficult, time consuming and expensive. Alternatively, selling to a real estate investor could be one of the best options available to you.

Disadvantages of a Second Home

A second home may have seemed like a good investment at the time, especially if you made your purchase when real estate prices were still climbing. However, in the depressed market following the crash of 2008, many people have found that their second home isn’t worth the money and effort it takes to maintain it. They’re carrying a lot of extra debt and paying a lot of property taxes for a property they only use for part of the year.

The taxes can be especially high for vacation homes or beach houses in desirable, high-value areas. If you’re in this situation, you can feel trapped. You may even have attempted to sell via a conventional real estate agent in the past, without much success.

Fortunately, you can still sell a second home you don’t want any longer. Just contact a real estate investor.

Absentee Homeownership

Legally speaking, you can be an absentee homeowner if you own any property that you don’t live in for at least part of the year. A lot of people who fall into this category bought their properties for investment purposes and use a property management company to keep it in good condition. Many absentee owners are also landlords, a situation that has a poor connotation, since absentee landlords are often hard to contact, but happy to collect rent owed.

However, not everyone is like this. You could be considered an absentee property owner if you purchased a home that you are no longer able to live in because of geographical distance or other

In some cases, you could end up in danger of losing your primary home entirely.

Most of the time, homes sold at auction after a foreclosure go for far less than their original value. Depending on where you live, you could be left holding the bill for the difference between your original mortgage amount and the sale price. This difference is referred to as a deficiency balance. If you end up in this situation, some states allow your deficiency to be treated just like any other unsecure debt.

That means that the creditor for the deficiency on your second home could file a lawsuit against you on the debt, allowing the creditor to levy your bank accounts, garnish your wages and even put a lien on your primary residence. Not all states permit this, and some will protect the deficiency entirely, but it’s important to do your research and find out whether your original home could be at risk. Successfully selling your home before a foreclosure can occur removes the danger of a lien.

Real Estate Investors Vs. Real Estate Agents

A real estate investor is someone who actively purchases properties for later rental or sale. These people are extremely interested in purchasing homes and other properties that you no longer want, and they’re willing to make the sale process very easy. Listing a home on your own or via a conventional real estate agency can take a very long time. You’re not guaranteed a sale, and the agent may take part of the proceeds as a fee for their services. If you really want to get rid of a home you no longer need or want, regular sale techniques aren’t very effective.

This is where an investor can be a better choice. Most real estate investors are willing to pay cash up front for your second property, allowing you to pay off large chunks of the remaining mortgage. In some cases, you may be able to pay the debt off entirely and have some money remaining. The investor handles most of the forms and paperwork for you, and you don’t have to spend months tied up in red tape.

factors. An extra property of this type can be an enormous burden, since you still have to pay taxes and a mortgage, but don’t get most of the benefits offered to live-in homeowners. If your old home or investment property isn’t producing the income you need to keep it afloat, consider selling to an experienced real estate investor, instead. You’ll be able to stop paying for that extra property and you’ll get the money you need to move on.

Don’t Let Second Homes Go Into ForeclosureIf the mortgage and taxes for your second home have gotten out of hand and foreclosure is looming, it can be tempting to just let the property go. After all, if you don’t live there, losing the property is much less threatening than if your first home were in danger. A foreclosure on your second property could negatively affect your primary residence, however.

Another benefit of working with an investor instead of an agent is that you can sell your property as-is. Most investors are interested in buying properties, improving them, and renting them or selling them later, when they feel that they can make a better profit. That means that you aren’t required to spend a lot of money fixing up a home that you no longer want. You can sell to an investor based on the house that you have, not the house you could have.

When you’re already struggling financially, putting on a new roof or redoing a home interior isn’t really an option. Still, many real estate agents don’t want to handle a house that needs work to appeal to potential purchasers. A lot of real estate investors will buy houses that are old, not quite up to date, or just plain ugly. There’s no need for you to do a lot of extra work before the sale, because these investors are willing to do the work afterward in order to pay a little less for the home.

Investors Vs. Foreclosure

Selling to a real estate investor is a much better option than choosing to allow your second property to fall into foreclosure. The foreclosure process could leave you owing a lot of money on your mortgage, even though you no longer have the second house. It can also severely scar your credit rating, making it hard to buy again in the future. Even if you choose an investor who offers less than the total amount available on your mortgage, you won’t have to deal with the long-lasting damage to your credit caused by a foreclosure.

In many cases, you’ll be able to rid yourself of an inconvenient, unwanted property with no debt or other legal strings to deal with afterward. The real estate investor receives a new property with

investment potential, and you no longer have to worry about an extra house that could ruin your credit. In many cases, the investor is even willing to take over communicating with your lender, so you won’t have to handle nasty phone calls or letters about what you owe.

Flexibility

If the situation with your second home is such that normal sale terms won’t work for you, an investor may offer the flexibility you need to get out of your mortgage. Since real estate investors offer cash from private funds for all the houses they buy, they don’t have to stick to the rules and regulations a bank will put on an ordinary buyer. They can buy homes that other lenders might consider too much of a risk, give you a range of flexible payment options and work with you to get the right deal for your second house.

If you have a second home or other property you don’t live in that you no longer want to worry about, it might be time to start talking to a real estate investor. These people can take houses that are ugly, expensive or simply inconvenient off your hands and keep lenders from hassling you. You may even end up with a little extra cash in hand after the deal. The entire closing process happens much more quickly than a conventional house sale, you have many more options and you’ll end up with clear credit without foreclosure.

Think about contacting an experienced, professional real estate investor if you have a home that you no longer want. Working with investors removes the hassle of selling and helps you get money quickly.

It’s a win-win situation!

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